Former Missouri LPL FInancial Broker Joseph A. Likens Under Investigation

Silver Law Group is investigating former Missouri-based LPL Financial LLC (CRD# 6413) broker Joseph A. Likens (CRD# 3084903) after a customer filed a FINRA arbitration alleging selling away, unsuitable recommendations and misrepresentation.

According to Likens’ FINRA BrokerCheck report, Likens has five (5) disclosures. Most recently, a customer filed a complaint against Likens in November 2016 alleging he sold outside investments away from his firm, unsuitable recommendations and misrepresentation. The complaint alleges $120,000 in damages and is currently pending.

Prior to the FINRA arbitration filing, FINRA permanently barred Likens from acting as a broker or otherwise associating with firms that sell securities to the public in October 2016 after Likens failed to respond to a FINRA inquiry for information.

According to his detailed CRD report, Likens was doing business under the LPL Financial umbrella using the moniker Cornerstone Wealth Management, LLC as an investment adviser representative. In May 2015, Cornerstone discharged Likens for violating Cornerstone policies regarding trading away and unreported holdings.

In 2013, Likens declared bankruptcy.

LPL Financial employed Likens from January 2015 to May 2015. Prior to his employment with LPL Financial, Merrill Lynch, Pierce, Fenner & Smith Incorporated (CRD# 7691) employed Likens from April 2009 to January 2015. At both stops, Likens was based out of Missouri.

The term “selling away” is used when a broker sells or solicits the sale of securities that are not held or offered by the brokerage firm he or she is associated. Usually, the investments sought to be sold by the rogue broker are not approved by the employing firm and are often private placements or other alternative investments.

This is an important issue, as our firm sees many cases in which brokerage firms allege they conducted due diligence and the due diligence conducted was inadequate. In the cases of selling away, you have a rogue broker selling an investment that was either not vetted at all by the employing brokerage firm or was vetted and determined unsuitable for the brokerage firm’s customer base.

Brokers and brokerage firms have a duty to recommend suitable investments to their customers. This entails ensuring the investment is generally suitable for investment purposes and also suitable for the particular investor, factoring age, investment goal, and other factors.

On top of the duty to recommend suitable investments, a brokerage firm has a duty to supervise its brokers. The brokerage firm is responsible for the actions of its brokers.

FINRA arbitration is a fast, efficient way to recover your lost investment funds. We work on a contingency fee basis, meaning you pay us nothing unless we win and recover money for you.

If you have invested with Joseph A. Likens and LPL Financial and/or Merrill Lynch, Pierce, Fenner & Smith and have lost money doing so, you may be able to recover some or all of your losses. Our lawyers are experienced in recovering investor losses due to broker and brokerage firm misconduct through FINRA arbitration.

Silver Law Group represents the interests of investors who have been the victims of investment fraud. If you have questions about your legal rights, please contact Scott Silver of the Silver Law Group for a free consultation at ssilver@silverlaw.com or toll free at (800) 975-4345.